This week, Amazon.com, Inc. AMZN launched its news Amazon Connect product, a cloud-based customer contact center service. According to Global Equities Research analyst Trip Chowdhry, Amazon Connect could be very bad news for cloud rival Twilio Inc TWLO.
Chowdhry spoke with four developers that use AWS services, and he says the consensus view is that Amazon Connect is a major threat for Twilio.
“TWLO will lose its market share to AWS Connect. Pricing will also come under pressure since AWS Connect is about 40% cheaper compared to TWLO,” Chowdhry explains.
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Developers pointed out a number of advantages Amazon Connect has over Twilio. They told Chowdhry Connect’s interfaces are simpler than Twilio’s and Connect is roughly 40 percent cheaper that Twilio’s offerings.
Both Twilio and salesforce.com, inc. CRM have already announced integrations with Connect.
Earlier this week, Chowdhry mentioned Twilio among a group of “junk” stocks that have been part of a new Silicon Valley tech bubble.
“[The] startup bubble continues to burst — zero durability, zero technology,” he said. “It is all about one investor finding the next fool, and sadly they have exhausted all the fools.”
Other tech names on Chowdhry’s junk stock list include Fitbit Inc FIT, GoPro Inc GPRO, Groupon Inc GRPN and Snap Inc SNAP.
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